A business is a set of systems to deliver valued products or services to customers and increase value for the shareholders. The systems are:
- Sales and marketing
- Accounts receivable
- Accounts payable
- Payroll
- Product development
- Product manufacturing
- Product delivery
- Maintenance
- Safety (loss control)
Not a complete list to be sure and some systems could have different names based on your industry, but you get the idea.
If your company is lacking any of these systems they will not last. If you don’t collect on you accounts receivable you won’t be able to fulfill your accounts payable. If you don’t fulfill your accounts payable, vendors will cut you off. Without supplies from vendors you won’t be able to produce your product with no products, no sales, no payroll, etc.
The part of this that seems to be miss-understood is that Safety is another system in a business if you don’t have an effective Safety culture you are throwing money away.
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